Cummins Inc. reported after-tax profits of $3 million for third quarter 2001, down from $25 million for the same period a year ago, but not bad considering the economy.
“I’m pleased that we met our objectives for the quarter and remained profitable despite the worst market deterioration I’ve experienced, in virtually every one of our North American end markets,” said Chairman and CEO Tim Solso.
Total sales for the company’s Engine Business were $767 million, down 20% from a year ago. Earnings before interest and taxes ended up $18 million in the red versus a $6 million profit in third quarter 2000. Cummins said the loss was due primarily to volume decreases and the resulting under-absorption of overhead costs.
The company’s worldwide sales of heavy duty truck engines for the quarter were $222 million, down 27% from a year ago. Unit shipments to the North American heavy truck market were down 45%. Unit shipments to international markets were down 31%, primarily due to a reduction in shipments to OEMs in Mexico.
Sales in the medium duty truck and bus market were $135 million, down 23% from a year ago. North American shipments were down 35%. International shipments were down 20% due to lower demand in China and Latin America.
Sales to light duty automotive and recreational vehicle markets were $165 million, down 22% from a year ago. Filtration business demand was down 4% from third quarter 2000, due to the slowdown in virtually all North American and European OEM markets.
Sales in the Power Generation business were $371 million, up 11% from third quarter 2000. Earnings before interest and taxes were $29 million, up from $25 million a year ago.
The company said continuing deterioration across its markets makes a fourth quarter improvement unlikely. Instead, it expects fourth quarter results to be about the same as the second and third quarter.
“I’m pleased that we met our objectives for the quarter and remained profitable despite the worst market deterioration I’ve experienced, in virtually every one of our North American end markets,” said Chairman and CEO Tim Solso.
Total sales for the company’s Engine Business were $767 million, down 20% from a year ago. Earnings before interest and taxes ended up $18 million in the red versus a $6 million profit in third quarter 2000. Cummins said the loss was due primarily to volume decreases and the resulting under-absorption of overhead costs.
The company’s worldwide sales of heavy duty truck engines for the quarter were $222 million, down 27% from a year ago. Unit shipments to the North American heavy truck market were down 45%. Unit shipments to international markets were down 31%, primarily due to a reduction in shipments to OEMs in Mexico.
Sales in the medium duty truck and bus market were $135 million, down 23% from a year ago. North American shipments were down 35%. International shipments were down 20% due to lower demand in China and Latin America.
Sales to light duty automotive and recreational vehicle markets were $165 million, down 22% from a year ago. Filtration business demand was down 4% from third quarter 2000, due to the slowdown in virtually all North American and European OEM markets.
Sales in the Power Generation business were $371 million, up 11% from third quarter 2000. Earnings before interest and taxes were $29 million, up from $25 million a year ago.
The company said continuing deterioration across its markets makes a fourth quarter improvement unlikely. Instead, it expects fourth quarter results to be about the same as the second and third quarter.
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